Blog: ConAgra completes Ralcorp takeover
Dean Best | 30 January 2013
A little over two months after US food giant ConAgra Foods struck a deal to buy local private-label rival Ralcorp Holdings, it has sealed its US$6.8bn takeover of the company.
The two groups, major players in the US' fragmented but growing own-label sector, announced the completion of the deal yesterday (29 January).
ConAgra has long been interested in buying Ralcorp - in 2011, it had a number of takeover bids rejected - and the company's management were excited they had finally got their man.
ConAgra CEO Gary Rodkin said: "Today's acquisition of Ralcorp provides us with the right mix to deliver greater value and innovation to our customers and consumers, and sustainable, profitable growth to our shareholders."
The deal means ConAgra has become the largest private-label supplier in the US and the company sees plenty of benefits from the deal. When the transaction was first announced in November, Rodkin said ConAgra's strength in areas like innovation could be one benefit it brings to the table and would allow the company to manage the two sides of the business closely.
However, some have questioned the sector's potential. Last autumn, SymphonyIRI claimed the own-label category in the US had reached a "glass ceiling".
And some on Wall Street have asked whether ConAgra can really compete successfully with new products in Ralcorp's core categories like cereal and snack bars.
It is a deal that has boosted ConAgra's presence in what it deems to be an attractive sector - and there could be more deals to come - but there will be challenges ahead for the company.
Click here for just-food's analysis of the deal, published in November, including an interview with senior ConAgra executive Doug Knudsen.
There has been an increase in M&A among companies in the food sector in recent months - and management consultants at EY expect to the trend to continue....
Nelson Peltz is not letting go. The US billionaire investor is continuing in his quest to get PepsiCo to split in two - and has reportedly suggested a proxy battle with the company could be on the hor...
just-food has launched a section on its website dedicated to interviewing internationally-ambitious small- and medium-sized enterprises. ...
The boom in demand for dairy products in emerging markets has been underlined by the latest data on the largest companies in the industry....
- On the move: What's in store from Tesco's new CEO?
- On the money: Steady as she goes at Cloetta
- Focus: Lindt plays safe with Russell Stover buy
- Interview: Bell hits out at German cartel ruling
- On the money: Can Premier build H2 sales momentum?
- UPDATE: Premier establishes international unit
- Campbell issues warning on 2014/15 fiscal year
- Premier launches Oxo pots range in UK
- Universal Robina to buy biscuit firm Griffin's
- Genius secures listings in French supermarkets